Hard Money Fix and Hold Loan for Home with ADU in San Diego, California

TaliMar Financial, a direct lender in San Diego, funded a $568,000 fix and hold loan secured by a single-family home in San Diego, CA. The loan funded both the purchase and renovation costs of the property. Our client will complete a renovation of the property and hold it as a long-term rental. We structured a loan that provided sufficient funds for the purchase and the entire renovation budget. Our construction release schedule will allow the client to quickly complete the renovations. The hurdle in this transaction was that the renovations included the addition of an accessory dwelling unit (ADU). Obtaining a finished value on a property with an ADU can be difficult because typically there are few sales of updated properties with ADU’s. Using a blended comparable sales analysis and income approach, we worked with the client to establish a finished value. This hard money loan was funded in November 2020.